(Corrects firm's name to Foglamp Capital Partners from Foglight
Capital in paragraph 8)
By Svea Herbst-Bayliss
BOSTON, June 2 Some hedge fund managers can
finally brag a little as several prominent ones, including
Daniel Loeb and William Ackman, last month beat the broader
stock market's gains, early returns show.
Loeb, who runs $16 billion Third Point, told investors his
Third Point Partners LP fund gained 2.1 percent in May while its
more aggressive Third Point Ultra Ltd fund climbed 3.5 percent.
The Pershing Square Holdings Ltd fund, run by Ackman's $11
billion Pershing Square Capital Management, meanwhile climbed
2.4 percent in May.
Both beat the average hedge fund's 0.24 percent gain in May
plus the broader Standard & Poor 500 stock market index's 1.4
Third Point Ultra is up 16.1 percent in the first five
months of 2017 and Partners is up 9.9 percent. Ackman's fund is
up 4.3 percent, after two years of losses.
The gains come at a critical time as industry investors
protest lackluster returns with calls for lower fees. Many hedge
fund managers were wrong-footed by last year's U.S. election
inspired rally but said they are now finding their way with bets
on foreign stocks and undervalued U.S. companies.
The Citadel Wellington fund, run by Ken Griffin's $26
billion Citadel, gained 1.9 percent in May and is up 5.5 percent
for the year. Dan Och's $32.4 billion Och-Ziff Capital
Management's OZ Master Fund gained 1.31 percent last month,
leaving it up 6.15 percent for the year. Its OZ Asia Master Fund
notched a 3.72 percent gain in May, leaving it up 12.45 percent
for the year.
Some smaller funds, especially activist oriented strategies
also gained. Mick McGuire's Marcato Capital Management, which
put three directors on the board at Buffalo Wild Wings, gained
1.6 percent in May and is up 7.7 percent for the year. Scott
Ferguson's Sachem Head LP fund gained 2.48 percent last month.
Foglamp Capital Partners, which focuses on companies that
have been beaten down with a chance to recover gained 4.2
percent in May and is up 11.4 percent this year. Network
software company Gigamon Inc. was one of its biggest winners
But there were losers as well, including David Einhorn's
Greenlight Capital, now waging a proxy battle at General Motors.
The fund lost 3.7 percent in May and is off 3.3 percent this
(Reporting by Svea Herbst-Bayliss; Editing by Andrew Hay)